A Virginia listing agent represents a seller whose home is under contract with a buyer. The contract contains a home inspection contingency. After the inspection, the buyer submits a written request for $18,000 in repairs. The seller counters with a $6,000 credit. The buyer does not respond to the seller's counter within the contingency period, and the contingency deadline passes. The listing agent advises the seller that the contract is now void because the parties did not reach agreement on repairs. Is the listing agent's advice correct?
Correct Answer
C) It depends on the specific language of the inspection contingency; some Virginia contracts treat the buyer's silence after a counter as acceptance, while others treat it as the contingency remaining unresolved
The outcome depends entirely on the specific language of the inspection contingency clause in the contract. Virginia residential purchase contracts vary in how they handle the scenario where the buyer fails to respond to the seller's counter-offer on repairs within the contingency period. Some contract forms treat buyer silence as acceptance of the seller's counter, meaning the contract proceeds with the $6,000 credit. Others treat the unresolved negotiation as the contingency remaining unsatisfied, allowing either party to void the contract. The listing agent's blanket statement that the contract is 'void' is an oversimplification that ignores the controlling contract language.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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